For those of you who missed Jeff Bailey's online seminar on point
and figure charting last night, here is a brief explanation of
the topic.

Aftermarket Technology Point and Figure Chart

For illustrative purposes only, lets walk through a point and
figure chart using Aftermarket Technologies (NASD:ATAC) as an
example. Starting back in early April of last year, ATAC
reversed into a column of Os, and gave a double bottom sell
signal (not shown because I couldn't fit it on the chart). ATAC
then proceeded to trade lower for eight months without ever
issuing a buy signal. ATAC finally bottomed at $1.75, and then
consolidated in December (the red C) before flashing a buy signal
in early January (Point #1). At this point sellers (supply) had
finally stopped beating up the stock, and some buying (demand)
started to enter the picture. That column of 11 Xs gave us the
column to use for calculating the bullish price objective of
$10.75. ATAC then pulled back, but has not issued a sell signal
since. As Aftermarket continues to climb towards $10.75 it
appears that demand is firmly in control as a pattern of
advancing 6 or 7 boxes, and then pulling back 3 or 4 boxes has
set up, but never attracting enough selling interest to flash a
sell signal. Based on the current state of the chart, ATAC would
have to trade $4.25 to flash a sell signal that would cancel our
bullish price objective and suggest that supply has taken
control. This was just a very quick explanation of point and
figure charting, but the more it is used, the better feel a
trader gets for how supply and demand affects a stock.